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Leases or rental agreements may range in duration from as short as one week to as long as over one year. Both short- and long-term leases offer their own benefits and drawbacks for tenants and landlords alike. If flexibility is your biggest concern, or you only need a place to stay for a short time, a short-term lease is ideal for you.

What Constitutes a Short-Term Lease?

A short-term lease generally refers to a lease with a duration of less than six months. Often, they are based on a month-to-month rental agreement, which may or may not be renewed at the end of each month. Although monthly agreements are the most common, they may be weekly, or even less than one week in the case of vacation rentals. Short-term leases are more common in areas with high demand and low supply of rental property as landlords can afford to be more particular about who they choose as tenants.

Different Types of Short-Term Leases

A short-term lease most commonly refers to a standard apartment or home lease in which the tenant lives in the property owned by the landlord. But short-term leases may also refer to other situations, such as a vacation rental in which a landlord rents out her property to tourists or vacationers. Vacation rentals usually involve an even shorter agreement than a typical short-term lease, sometimes less than one week.

Benefits of Short-Term Leases

The biggest benefit of a short-term lease is flexibility. This flexibility is ideal if you work in a field that may require you to relocate with little notice. It is also beneficial if you are looking for a new place of employment as you will be free to move closer to a potential job site. Or if you've just moved to a new city and are looking for temporary residency while you determine where you'd like to live permanently, a short-term lease will grant you the flexibility you need.

Drawbacks of Short-Term Leases

Short-term leases offer little stability for tenants and landlords. At the end of an agreement's duration, the agreement may be changed, which leaves renters vulnerable to sudden increases in rent. It also allows for either party to submit a notice of nonrenewal at the end of each term. This leaves little notice for the tenant to find a new residence or for the landlord to find a new renter. Because of this vulnerability, landlords generally charge more for a short-term lease than a long-term one.

About the Author

Based in Connecticut, Chelsea Lothrop has been writing for publication since 2009. Her primary focuses are real estate, personal health, and literature. Lothrop is a former contributor to the Speedy Tenants Rental Agency blog. She is currently completing her bachelor's degree in literature through Arizona State University.